Bitcoin price holds $23.5K, prompting bulls to say ‘it’s different this time’
Similar to Stockholm syndrome where prisoners develop a psychological bond with their captors, crypto winters have a way of turning even the most bullish cryptocurrency followers bearish in a short amount of time.
Evidence of this reality was on full display on July 19 after the recovery of Bitcoin (BTC) back above $23,000 was met with widespread warnings that the move was just a fake before the market heads for new lows
Not bad. But remember that this can still be a classic fake out.
My general assignment still remains, bear market rally pic.twitter.com/VxnH4mo6hW
— Jimie (@Your_NLP_Coach) July 19, 2022
While the possibility of new lows being set in the future cannot be ruled out, here is a look at analysts’ opinions on how this BTC breakout could be different than most investors expect.
This time “it’s different”
The pointed message of “this time is different” was offered by the pseudonymous Twitter user Trader XM, who posted the following chart showing why BTC is poised to go higher.
As highlighted on the chart above, BTC price did not retest the interval low even though four retests of the interval high took place, suggesting that buyers are now stronger than sellers.
In response to Trader XM’s post, Twitter user Justiinape replied “$27K-$28K seems imminent.”
Trader XM so,
“Agreed my man, move to $27-28K and then months of consolidation. Let’s enjoy this move before the long lull.”
The next major resistance is at $27,100
Further evidence that BTC could go higher was provided by chain data firm Whalemap, which posted the following chart which highlights the lack of buying demand between $23,000 and $27,000.
whalemap said,
“$27,100 should be the first resistance on the way up. Big gap in offer between current prices and $27K.”
Related: Bitcoin price moves towards $24,000 and traders expect further upside after a support test
Shorts get STRAIGHT
Evidence that crypto traders had been lulled into an overly bearish outlook was provided by cryptocurrency analyst Dylan LeClair, who posted the following chart showing the effect Bitcoin’s move above $23,000 had on futures traders.
As highlighted on the chart, there was a large amount of Bitcoin short positions opened between June 15th and July 15th, and these traders are now on the losing side of the trade.
LeClair said,
“Tens of thousands worth of BTC short open interest currently underwater.”
While Bitcoin reversing course and heading lower again is a possibility, today’s momentum suggests further upside in the near term.
The total cryptocurrency market cap is now at $1.055 trillion and Bitcoin’s dominance rate is 42.1%.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade involves risk, you should do your own research when making a decision.
